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Please also help answer: 1. Standard deviation of the portfolio with stock B is __ 2. Which stock should you add and why? x P
Please also help answer:
1. Standard deviation of the portfolio with stock B is __
2. Which stock should you add and why?
x P 12-18 (similar to) Question Help You have a portfolio with a standard deviation of 28% and an expected return of 19%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Expected Return 14% 14% Standard Deviation 26% 20% Correlation with Your Portfolio's Returns 0.3 0.6 Stock A Stock B Standard deviation of the portfolio with stock A is %. (Round to two decimal places.)Step by Step Solution
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